Ga.'s Sea Island Resort Enters Ch. 11 For $198M Sale

By Erin Fuchs

Law360, New York (August 11, 2010, 3:20 PM ET) -- Georgia resort Sea Island Co. has filed for bankruptcy following a costly expansion in order to facilitate the sale of its assets for $197.5 million in cash to investment funds managed by Oaktree Capital Management LP and Avenue Capital Group.

In a disclosure statement filed Tuesday in the U.S. District Court for the Southern District of Georgia, the resort said it filed for Chapter 11 protection because it couldn't pay off the costs of the expansion after the economy collapsed.